Old Age Security (OAS) Calculator

This Old Age Security (OAS) calculator helps you estimate the OAS benefits you may be eligible to receive. Enter your information to calculate the OAS clawback and plan your Canadian retirement income.

What is Old Age Security (OAS) in Canada?

Old Age Security (OAS) is one of the three pillars of Canada’s public retirement income system, alongside the Canada Pension Plan (CPP) and the Guaranteed Income Supplement (GIS). Unlike CPP, which is funded through employer and employee contributions, OAS is funded from general tax revenues and does not require any employment history or contributions.

OAS provides a monthly taxable payment to Canadians aged 65 and older who meet the residency requirements. Almost all Canadians who have lived in the country long enough will qualify for at least a partial OAS pension, making it the most broadly available retirement income program in Canada.

OAS Payment Amounts for 2025

The maximum monthly OAS pension is reviewed quarterly and adjusted based on the Consumer Price Index (CPI) to keep pace with inflation. OAS payments can increase but never decrease, even if inflation turns negative.

In July 2022, the federal government introduced a permanent 10% increase for OAS recipients aged 75 and over. This means seniors aged 75+ automatically receive a higher monthly amount without needing to apply.

The actual amount you receive depends on how long you have lived in Canada after age 18. If you have fewer than 40 years of Canadian residency, you will receive a partial pension.

OAS Eligibility: Residency Requirements

To receive any OAS payment, you must be at least 65 years old and have lived in Canada for a minimum of 10 years after turning 18. To qualify for the full OAS pension, you need 40 years of Canadian residency after age 18.

If you have between 10 and 40 years of residency, you receive a partial pension calculated as a proportion of the full amount:

Amounts based on maximum 2025 rates for ages 65–74.

Canadians living abroad may still qualify for OAS if they had at least 20 years of Canadian residency after age 18. Canada also has social security agreements with many countries that may allow foreign residency to count toward OAS eligibility.

OAS Clawback (Recovery Tax) Explained

The OAS recovery tax, commonly known as the OAS clawback, reduces your OAS payments when your net income exceeds a certain threshold. The clawback is calculated at a rate of 15 cents for every dollar of net income above the threshold.

OAS Clawback Thresholds

OAS Clawback Worked Example

Suppose your net income is $110,000 in 2025:

1. Income above threshold: $110,000 − $90,997 = $19,003
2. Clawback amount: $19,003 × 15% = $2,850.45 per year
3. Monthly reduction: $2,850.45 ÷ 12 = $237.54
4. Remaining monthly OAS: $727.67 − $237.54 = $490.13

The clawback is calculated on your previous year’s income tax return and applied to OAS payments from July of the current year to June of the following year.

OAS Deferral: Getting a Higher Payment

You can choose to defer your OAS pension for up to 60 months (5 years) past age 65. For each month you defer, your pension increases by 0.6%, for a maximum increase of 36% if you wait until age 70.

Based on 2025 maximum OAS for ages 65–74. Amounts at age 75+ would be higher due to the 10% top-up.

Deferring OAS makes financial sense if you expect to live past approximately age 80–81 (the break-even point), have other sources of income to cover your expenses between 65 and 70, or want to reduce the OAS clawback during your higher-earning years.

You cannot defer OAS and receive GIS at the same time. If you need the Guaranteed Income Supplement, you should begin receiving OAS at age 65.

Strategies to Minimize the OAS Clawback

High-income retirees can use several strategies to reduce or eliminate the OAS clawback:

1. Draw From Your TFSA

Withdrawals from a Tax-Free Savings Account (TFSA) do not count as taxable income and will not trigger the OAS clawback. Building a substantial TFSA balance before retirement gives you a tax-free income source.

2. Income Splitting With a Spouse

If your spouse is in a lower tax bracket, pension income splitting can reduce the higher-income spouse’s net income below the clawback threshold. Up to 50% of eligible pension income (including RRIF withdrawals) can be split.

3. Timing RRSP/RRIF Withdrawals

Withdrawing from your RRSP or RRIF strategically across multiple years can prevent income spikes that trigger the clawback. Consider drawing down your RRSP earlier in retirement (before OAS begins) to reduce your RRIF balance later.

4. Defer OAS to Age 70

If your income between 65 and 70 is high enough to trigger a significant clawback, deferring OAS avoids the clawback during those years while increasing your future monthly payments by up to 36%.

5. Invest in Tax-Efficient Assets

Capital gains and eligible Canadian dividends receive preferential tax treatment, which can result in lower net income for OAS clawback purposes compared to interest income or RRIF withdrawals. See our capital gains tax calculator for more details.

The Three Pillars of Canadian Public Retirement Income

Canada’s retirement income system is built on three pillars:

Most Canadians will need a combination of all three pillars plus personal savings to maintain their standard of living in retirement. Use our retirement calculator to estimate how much you will need.

Related Calculators

• CPP Calculator — Estimate your Canada Pension Plan retirement benefits
• Retirement Calculator — Plan how much you need to save for retirement
• RRIF Calculator — Calculate minimum RRIF withdrawals
• RRSP Calculator — Estimate RRSP contribution room and tax savings
• TFSA Calculator — Plan your Tax-Free Savings Account contributions
• Income Tax Calculator — Calculate your federal and provincial income tax
• Inflation Calculator — See how inflation affects your purchasing power over time